This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.Need a new registration confirmation email? Click here

5 Rocket Stocks to Buy After Last Week's Rally

Home Depot is the largest home improvement chain in the world, with 2,250 stores spread across all three countries in North America. The firm's customers include retail consumers as well as wholesale construction buyers, positioning that's given HD a more direct route to housing spending than smaller hardware competitors. Overly aggressive growth was Home Depot's biggest problem in the last few years -- and management learned important lessons as a result. Going forward, the firm should be able to avoid repeating history while growing its geographic footprint more cautiously

Home improvement spending decoupled from the housing market back in 2008, breaking Wall Street's view that a housing bust would destroy sales for home improvement retailers. That revenue resilience justifies a higher multiple now that sales are back in full swing.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet
. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes
, Investor's Business Daily
, and on CNBC.com.
Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.